Which of the Following Is Not an Advantage of a Strategic

question 74

Multiple Choice

Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure?

• A) Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.
• B) Divisional executives can respond quickly to market changes and opportunities.
• C) Planning and control by the corporate office is more manageable.
• D) The corporate office is more removed from the individual divisions.

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Definitions:

Constructive Notice

Notice presumed by law that an individual should have known, often through the public recording of documents, even if they were unaware.

Perfect Security Interest

An interest that is legally protected and established in a way that no other claimant can have a higher claim upon the collateral in question.

Purchase Money

Funds that are used specifically for the acquisition of assets, often related to real estate transactions or personal property.

Installments

Payments that are made periodically towards a debt, allowing for the total amount to be paid off over time rather than all at once.